Taxback International makes VAT reclaim effortless, no matter how many countries require you to file VAT. Reclaim up to 27% on both foreign and domestic business spend including corporate travel & entertainment and accounts payable invoices.
Value Added Tax (VAT) is an indirect tax imposed on the supply of goods and services , contributing an additional 5% – 27% to your company’s operational costs. The applicable VAT rates differ across countries.
This tax is also recognised under different names, including IVA (Italy), GST (Canada, Australia, India), MWST (Germany, Austria), TVA (France, Belgium) and MOMS (Scandinavia) to name just a few.
In order to encourage international trade, the European Union introduced legislation in the 1980s enabling businesses to claim back VAT paid on expenses incurred while doing business in member states.
VAT refunds are available from overseas and local tax authorities on many business expenses; however complex and strict rules do apply, along with tight deadlines.
Employees travelling internationally is a huge expense for businesses. The good news is businesses can claim back VAT on international travel and entertainment expenses connected to employee business trips, even when not VAT registered in the country where the expenses take place.
Eligible expenses include accommodation, meals, taxis, car hire, public transport and conference costs.
Businesses can recover VAT on domestic travel and expense (T&E) transactions such as hotels, accommodation, meals, entertainment etc.
This is typically reclaimed monthly or quarterly, but some countries also allow you to recover VAT on local business travel which occurred in the past.
Invoices from foreign suppliers attract significant foreign VAT charges, which is often refundable. However, the VAT reclaim process is complex, leading many businesses to miss VAT refunds.
An average of 70% of all foreign supplier invoices include inaccurate VAT charges, and once paid, it’s extremely challenging to reclaim the incorrect charges.
Businesses can reclaim VAT on Accounts Payable invoices in areas such as:
Our automated, cloud-based platform VATConnect eliminates your VAT burden while providing real-time visibility, making VAT reclaim effortless.